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This paper assesses the current stance of multiculturalism and diversity in Europe by taking a closer look at the perception of Muslims in the United Kingdom and France. It is a comparative study that analyzes the sentiments of nationalism along with how a series of pivotal events that have impacted the integration process of the Muslim populations. A look at certain key factors such as cultural and identity clashes, increasing instability in the Middle East and the influence of the media, demonstrates a rise in Islamophobia in Europe. By focusing on how the rise in Islamophobia has affected the perception of Muslim immigrants, the current level of acceptance is shown to be lacking. The UK shows how, even with a background in nationalism that is used to accepting diversity, a rise in anti-Muslim sentiment makes it step away from a politics of multiculturalism. Whereas, France’s emphasis on secularism and its connection to French culture and nationhood, slows down the acceptance of diversity, while rising Islamophobia makes it even harder for Muslim immigrants to find a place in French society.